In this episode of The Daily, the rise and dominance of Varsity Spirit, a cheerleading empire, is explored. From its beginnings as a small cheer camp provider, Varsity grew into a near-monopoly through acquisitions, exclusive venue contracts, and influence over governing bodies. The episode delves into the company's alleged anti-competitive tactics to limit rivals, resulting in soaring costs for families involved in competitive cheerleading.
It also examines the safety and well-being issues plaguing the sport, with high injury rates and allegations of mishandling sexual abuse cases by governing bodies tied to Varsity. The intense demands and substantial financial burden on families participating in competitive cheer are brought to light as well.
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Varsity Spirit grew from a small cheer camp provider into a sprawling cheerleading empire over four decades. According to David Gauvey Herbert, Webb built the company through innovations like televising cheer competitions on ESPN and creating the "All-Star" category of competitive cheerleading.
Varsity reinforced its leading position by acquiring rivals like Jam Brands and NCA. It also founded the United States All Star Federation (USASF), which was financially tied to Varsity, and secured exclusive venue contracts, expanding its control over the all-star cheer market.
Varsity has faced accusations of monopolistic behavior. According to Herbert, it staged "attack events" to undermine competitors, offered lucrative loyalty rebates to gyms, and used its influence over venues and governing bodies like USASF to restrict rivals' access.
With limited competition, Varsity increased costs for parents, with some estimates exceeding $10,000 annually per child for expenses like fees, uniforms, and travel.
Smaller event producers struggled against Varsity's market power. Gym owners, fearing lost rebates, were discouraged from seeking alternatives, though internal Varsity memos revealed concern over its monopolistic image.
Some likened Varsity's founder Jeff Webb to John D. Rockefeller for attempting to monopolize cheerleading. Critics also alleged that Varsity's profit motives impeded efforts to protect athletes from issues like sexual abuse.
The sport accounts for more severe female athlete injuries than any other. However, Varsity and the USASF were often accused of ignoring safety issues like the extremely high injury rates for "flyers."
Multiple lawsuits alleged the USASF failed to properly address sexual abuse reports and ostracized complaining families. This echoed the USA Gymnastics scandal in which governing bodies were accused of mishandling abuse cases.
According to Herbert, some families resorted to selling blood plasma to cover the substantial costs of competitive cheerleading, highlighting the economic strain the sport places on participants.
1-Page Summary
Varsity Spirit, a Memphis-based company, has transformed from a small cheer camp provider into a sprawling cheerleading empire. Founded by Jeff Webb, the company now dominates nearly every aspect of the sport in the United States.
Jeff Webb started his journey with cheerleading as a general manager of the National Cheerleaders Association (NCA) at the age of 23, after having worked with the organization’s founder, Lawrence Herkimer, the "father of modern cheerleading." Later, dissatisfied with NCA's traditional approach, Webb left and founded the Universal Cheerleaders Association (UCA) in 1974.
Webb took 20 of Herkimer’s top instructors to start UCA with ambitions to innovate the cheerleading industry. Despite Herkimer having once seen Webb as a potential successor and expressing great faith in him, Webb's departure was a point of contention, with Carolyn Herkimer, Lawrence’s daughter, feeling betrayed.
In a significant move in 1984, Webb made a deal with ESPN to televise cheer championships, which increased cheerleading’s visibility across 34 million American homes. Webb then introduced the "All Star Cheer" category, establishing cheerleading as a competitive main event with year-round opportunities, rather than a sideline activity.
Varsity Spirit expanded further with the creation of a uniform division, extended its reach through camps and competitions, and went public in 1992 with remarkable annual revenue. Dennis Worley, a longtime Varsity employee, contributed to developing the All Star market, ensuring divisions were available so all children could participate.
In the 1990s, Varsity saw its revenues quintupling, and the company's influence became so great that Webb's presence was often described as imperial, highlighted by the use of a private jet aptly named "Cheer Force One."
Varsity’s dominance is also evidenced by its aggressive expansion strategy, which included the acquisition of competitors. Notably, after struggling to compete due to Varsity's exclusiv ...
The rise and dominance of Varsity Spirit as a cheerleading company
Varsity’s business practices have been compared to historical monopolies due to its extensive market control and influence over the competitive cheer industry.
In 2003, after Jamie Parrish and coaches formed a group to standardize cheerleading rules, Varsity quickly established the United States All Star Federation (USASF) with a $1.8 million interest-free line of credit and required gym memberships to compete at its events. Some USASF staff were Varsity employees who volunteered their time. Varsity also created USA Cheer and became a corporate partner with the National Federation of State High School Associations, influencing high school cheer rules.
Varsity has faced accusations of monopolistic behavior, such as building a juggernaut that inflated prices and edged out competitors. For instance, it staged attack events in the same cities on the same dates as competitors’ events, limiting rival event producers’ venue options through exclusive contracts, and offering rebates to gyms to enforce loyalty. Herbert found Varsity’s control and critics called it a monopoly with hardball tactics.
Parents have reported annual costs upward of $10,000 per child for competitive cheer, including competition fees, uniforms, plane tickets, hotels, and meals. After acquiring companies like Jam Brands, Varsity increased event fees by more than 40%. Varsity’s acquisitions continued, but maintained the brands to obscure the money it drew from parents. The company generates hundreds of millions of dollars in annual revenue with high profit margins and has not been meaningfully challenged by lawsuits and controversies even though these have alleged that Varsity eliminated some competitions to direct teams towards more expensive Varsity events.
Varsity’s control of the market pressured smaller event producers, especially with the creation of The Summit, a Varsity-run event that generated significant revenue. Independent event producers felt thwarted by Varsity’s influence on the USASF and struggled against Varsity’s market power. Gym owners, reliant on rebates for loyalty, feared losing them, which discouraged competition. However, internal Varsity memos and employee comments revealed concern over the company's ...
Varsity's monopolistic business practices and their effects on the sport
Cheerleading poses significant safety and wellbeing risks, from catastrophic injuries to incidents of abuse, with the sport’s governing bodies under scrutiny for their responses to these issues.
Nikki Jennings retired from cheerleading due to acute health issues stemming from multiple concussions and a serious head injury sustained in a basket toss. Her retirement followed a chronic hip injury and enduring headaches named "stingers." Jennings' experiences underscore the high rate of catastrophic injuries in the sport and highlight the enormous pressure cheerleaders often face to perform regardless of their injuries.
According to the National Center for Catastrophic Sport Injury Research, cheerleading accounted for more catastrophic injuries to female athletes than any other high school and college sports combined over the past 40 years. Emergency visits for cheerleaders soared nearly 500% from 1980 to 2001. Moreover, flyers, the girls tossed into the air, have an extremely high injury rate, with Dr. Robert Cantu commenting that being a flyer is the riskiest position in all of women's sport.
Varsity and the U.S. All Star Federation (USASF) have been caught up in a sexual abuse scandal with disturbing similarities to the USA Gymnastics case. Herbert reveals that governing bodies like the USASF, founded by Varsity, have been accused of failing to comprehensively track and ban problematic coaches, such as Scott Foster who was sometimes visibly intoxicated. Despite Foster's suspension and subsequent investigation for sexually abusing a girl, photos indicate that violations were not always taken seriously.
Susan Crumpton, a former Varsity spokeswoman, commented that the USASF took appropriate actions based on the information available at the time, which did not include allegations of sexual misconduct. However, a USA Today investigative series found that nearly 180 individuals connected to cheerleading and sexual misconduct, were not barred by the USASF and USA Cheer. The reporting process for abuse was complex, and cheerleaders required assistance to navigate it, pointing to a broader issue with abuse in the sport.
Following the scandal involving Jerry Harris from "Che ...
The safety and wellbeing issues facing cheerleaders, including injuries and abuse
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